Tesla’s investors, irrespective of whether direct via the enterprise shares or indirect via active or passive funds, have now correctly turn out to be holders of cryptocurrency Bitcoin, without having in fact obtaining it. This occurred as Tesla’s famed CEO Elon Musk invested a staggering $1.5 billion of the company’s dollars into obtaining Bitcoin. Elon Musk also stated that Tesla will accept Bitcoin as a kind of payment quickly.
This provides Tesla shareholders exposure to the well-liked cryptocurrency — some could possibly welcome it, thinking about the meteoric surge in Bitcoin costs however, some other people may perhaps not like the threat and volatility that come along. Notably, it is not only the direct Tesla shareholders that now have Bitcoin exposure, but these with indirect and passive investments as well, such as S&P 500 index, a number of Vanguard index funds, Fidelity group funds, and quite a few more.
Mutual funds, pension funds, sovereign funds, and other investors in Tesla
Nearly 2,400 institutional investors hold more than half of the $783-billion Tesla shares. These contain mutual funds, sovereign wealth funds, and even pension funds, amongst other people. Recently, passive fund manager Vanguard group stated it has 6.1 per cent stake in Tesla, or 5.78 crore shares. Vanguard has turn out to be the biggest institutional shareholder in Tesla, with its stake valued at more than $47 billion. Fidelity group is the fifth-biggest institutional shareholder in Tesla with 2.8 per cent equity stake worth about $22 billion.
Passive investments in Tesla
Tesla, owing to the sheer size of its marketplace capitalization, is a key constituent in a number of well-liked stock indices, attracting large amounts of passive fund inflows. Tesla is the 6th biggest stock by weightage on the marquee US index S&P 500. The stock single-handedly tends to make up for more than 14% of S&P 500 Consumer Discretionary index, and more than 10% of NYSE FANG+ index.
Tesla stock in some well-liked stock indices:
- 1.86% of S&P 500 index
- 2.81% of S&P one hundred index
- 14.67% of S&P 500 Consumer Discretionary Sector GICS
- 3.53% of Nasdaq Composite index
- 4.86% of Nasdaq one hundred Stock Index
- 1.53% of Russell 3000 Index
- 10.15% of NYSE FANG+ Index
- 2.32% of MSCI World ESG Leaders Index
The enjoy for Bitcoin
Last week, California-based Tesla stated in a filing with the US Securities and Exchange Commission (SEC) that it has updated its investment policy, which will provide more flexibility to diversify and maximize returns on money that is not necessary to sustain sufficient operating liquidity. Bitcoin value surged to an all-time higher, surpassing $49,000-mark following Tesla’s investment. In current weeks, Elon Musk has been tweeting a lot about cryptocurrencies such as Bitcoin and Dogecoin, which has been driving up costs.
Elon Musk’s tweets send Bitcoin, Dogecoin costs soaring
So far in 2021, Bitcoin has delivered a huge 60.38 per cent returns. In January this year, Musk added hashtag bitcoin to his Twitter bio, which sent Bitcoin costs soaring. With gains of more than 90,00,000 per cent in the decade gone by, Bitcoin became the most effective performing asset in the final 10 years. Earlier this month, Dogecoin value soared by 50 per cent soon after Musk tweeted ‘Doge’ and then followed it with an additional tweet ‘Dogecoin is the people’s crypto’ and ‘No highs, no lows, only Doge’.
Tesla: The darling of stock markets, larger than Facebook, Alibaba, Berkshire Hathaway
Tesla is the seventh-biggest enterprise in the US by marketplace capitalisation ($783 billion), only behind Apple, Saudi Aramco, Microsoft, Amazon, Alphabet (Google) and Tencent. With the current stock value surge, Tesla is ahead of Facebook, Alibaba, Berkshire Hathaway, Samsung, Visa and JP Morgan Chase. Tesla shares debuted on S&P 500 on December 21, 2021, but the news of new coronavirus strain in Britain weighed on markets. On its 1st day on S&P 500, Tesla stocks fell 5 per cent to $659.99. Tesla stock closed at $816.12 in overnight trade on Friday, February 12, 2021.